PETALING JAYA: NTPM Holdings Bhd
stated while the business environment ahead remains challenging and volatile after a testing quarter, the paper and consumer goods manufacturer sees prices of raw materials, shipping costs and the US dollar moving in its favour.
Despite the overall concern of an economic slowdown, NTPM said demand for tissue paper and personal care products should remain relatively stable in the shorter term.
For the second quarter ended Oct 31 of financial year 2023 (2Q23), NTPM posted a net loss of RM3.5mil versus a net profit of RM3.5mil in 2Q22 due to the increase in the costs of raw materials, distribution and operating utilities such as electricity and gas. The loss came despite an increase in revenue of 21.8% year-on-year (y-o-y) to RM220.4mil for the three months in review. NTPM revealed that turnover from the tissue paper products segment contributed RM161.1mil to total revenue, with the balance coming from its personal product care segment.
The Penang-based company expects the economic recovery and the reopening of borders has increased demand for its products, paving the way for both higher sales volume and selling price.
“The weakening of the ringgit against the dollar has lent to the group’s higher exchange losses,” it said.
Cumulatively, for the six months ended Oct 31, NTPM posted a net loss of RM2.4mil as compared to the RM19.1mil net profit it managed in the same period of 2021.
It blamed the losses to rising cost pressures, adding, “the constant elevated costs of raw materials, especially the imported raw materials, and the general inflationary pressure are affecting the bottom line of the business of the group.”
Quarter-on-quarter, NTPM recorded a loss before tax of RM5.2mil for the quarter ended Oct 31, a decrease of 289.8% over a pre-tax profit of RM2.8mil registered in the preceding quarter.
This was mainly due to the higher cost in raw material consumed such as virgin pulp and waste paper.
As NTPM is expecting demand for tissue paper and personal care products to remain solid moving forward, it anticipates overall profitability to improve in the present quarter (3Q) ending Jan 31, 2023.
